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Investors Buy Gold ETFs at Record Pace

Scorpio

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Investors Buy Gold ETFs at Record Pace [Chart]
Jeff Desjardins
on March 4, 2016 at 10:56 am

etf-record-inflows-gold-chart.jpg


Investors Buy Gold ETFs at Record Pace
February had $7.9B in Gold ETF inflows – and the miners aren’t doing too bad either.
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

What were the three most popular investments over the last month?

If we’re judging by ETF inflows, the three areas that investors piled into were precious metals, government bonds, and low-volatility equities.

Notably, it was gold ETFs that set a new record with their highest monthly inflows in eight years, as investors bought $7.9 billion of securities in February. This is according to the latest from market data company Markit, that also noted that inflows relative to assets under management (AUM) were equally as impressive.

More specifically, last month’s buying represented an increase of 14.6% in terms of AUM. This is a level only surpassed once before during the heat of the Financial Crisis, when inflows relative to AUM hit 17.7% in February 2009.

Miners Get Some Love
Gold mining companies have also received some appreciation so far in 2016, with the Gold Miners (GDX) and Junior Gold Miners (GDXJ) benchmarks up 40.7% and 38.2% respectively YTD.

Despite outperforming gold so far on the year, the GDX hasn’t seen the same kind of inflows as the physical commodity. In fact, February saw $25 million of net outflows to the gold mining ETF.

This phenomenon isn’t uncommon in the gold sector, as the performance of the metal and the return on miners isn’t always congruent.

Here’s the latest GDX/Gold ratio, which essentially tracks the price of the major gold miners relative to the metal itself:

gdx-gold.jpg


If the gold rally continues, there will be no shortage of opportunity for mining stock speculators. That’s why we gave you three reasons to consider gold in 2016 last month.

http://www.visualcapitalist.com/investors-buy-gold-etfs-at-record-pace-chart/
 

Professur

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Buying phony gold with phony money ... why not? Leaves more real metal for the rest of us.
 

the_shootist

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Buying phony gold with phony money ... why not? Leaves more real metal for the rest of us.
1929: Buying phony stocks with phony money produced the stock market crash and led to the Great Depression. Those who refuse to learn from history are doomed to repeat it!
 

Goldhedge

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If you view a chart you'll note that these "gains" are mere blips in 5 years.

Haven't even hit resistance!

Someone needs to start WWIII so we can make some real money!!